Podcasts > The Game w/ Alex Hormozi > You're Not Growing Fast Because You're Making Decisions Slowly | Ep 859

You're Not Growing Fast Because You're Making Decisions Slowly | Ep 859

By Alex Hormozi

Making fast decisions is critical for business and leadership success, according to Alex Hormozi in this episode of The Game. He highlights the importance of leaders setting a quick pace through prompt decision-making, inspiring speed and agility in their teams. The blurb draws wisdom from entrepreneurs like Bezos and Musk, who prioritize fast decisions and quick course correction over lengthy plans or pursuit of marginal improvements.

Hormozi advocates overcoming the fear of mistakes by emphasizing the ability to adjust, rather than delaying action. He suggests a pragmatic approach of identifying reversible decisions and making prompt choices to ensure progress, ready to rectify potential missteps along the way.

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You're Not Growing Fast Because You're Making Decisions Slowly | Ep 859

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You're Not Growing Fast Because You're Making Decisions Slowly | Ep 859

1-Page Summary

Importance of Fast Decision-Making in Business and Leadership

In today's business world, fast decision-making is key for success and agility. Leaders set the tempo, inspiring swift action in their teams.

Fast Decisions Over Lengthy Planning

According to Bezos, in a rapidly changing environment, prompt decisions addressing immediate needs are more crucial than elaborate long-term plans that may quickly become outdated.

Leader's Speed Sets Team Pace

As Hormozi states, "the speed of the boss is the speed of the team." A leader's decisiveness directly impacts the pace and inspires this skill in their team.

Costs of Indecision and Slow Decisions

Slow decisions delay execution, incurring substantial costs across the organization. Hormozi warns that excessive data gathering and indecision significantly hinder growth.

Decision-Making Lessons From Entrepreneurs

Entrepreneurs like Musk, Bezos, and Zuckerberg prioritize rapid decisions, accepting potential failures as part of the process.

Musk: Aim for 80% Right Decisions

As Hormozi explains, Musk makes on-the-spot decisions, aiming to be right 80% of the time, with the ability to fix the remaining 20% later.

Bezos: "One-way" vs. "Revolving Door" Decisions

Bezos differentiates between irreversible "one-way door" decisions, requiring more deliberation, and reversible "revolving door" decisions, where the benefits of action often outweigh inaction.

Overcoming Fear of Mistakes and Increasing Decision Speed

Hormozi underscores the importance of normalizing fast decision-making and not fearing mistakes.

Emphasize Course-Correction Over Fear

He encourages acknowledging potential errors upfront but prioritizing progress, ready to rectify any missteps.

Speed Over Marginal Quality

Hormozi advocates making prompt decisions that are mostly correct (80%), with agility to adjust the remaining 20%, rather than delaying for perfection.

Per Musk's philosophy, Hormozi prefers immediate action and problem-solving over stalling for marginally better options. He adopts a pragmatic approach: first identify if a decision is reversible, then promptly select a likely successful alternative.

1-Page Summary

Additional Materials

Counterarguments

  • While fast decision-making is often beneficial, it can also lead to rash decisions without fully understanding the consequences.
  • Setting a fast pace as a leader can sometimes result in burnout or high turnover if team members cannot sustain that tempo.
  • Elaborate long-term planning can provide a clear vision and direction, which is essential for sustained success and can prevent constant course-correction.
  • The speed of the boss does not always equate to the speed of the team, as team members may have different capacities and resources.
  • Slow decisions, when made thoughtfully, can sometimes save resources by avoiding the costs associated with correcting hasty mistakes.
  • Entrepreneurs' prioritization of rapid decisions may not be suitable for all business models or industries where due diligence is critical.
  • Aiming to be right 80% of the time might not be acceptable in industries where precision is crucial, such as healthcare or aviation.
  • The distinction between "one-way door" and "revolving door" decisions may not always be clear-cut, and some decisions thought to be reversible could have long-term impacts.
  • Normalizing fast decision-making could inadvertently create a culture that undervalues thorough analysis and critical thinking.
  • Emphasizing course-correction could lead to a lack of accountability for poor decision-making if mistakes are seen as easily fixable.
  • The strategy of making prompt decisions and adjusting as needed may not be the most efficient or cost-effective approach in all situations.
  • Immediate action is not always preferable, especially in complex situations where additional information or analysis could lead to better outcomes.
  • The process of identifying whether a decision is reversible may itself require time and careful consideration, which could slow down decision-making.

Actionables

  • You can practice rapid decision-making by setting a timer for everyday choices. For instance, give yourself 30 seconds to decide what to wear or what to eat for breakfast. This habituates your brain to making quick decisions, reducing hesitation and building confidence in your choices.
  • Create a "decision journal" to track and reflect on the speed and outcomes of your decisions. After making a decision, jot down the reasoning behind it, the time it took to decide, and later, the result. This will help you analyze your decision-making patterns and improve your ability to make swift, effective choices.
  • Implement a "two-minute rule" for small tasks or decisions. If something can be done or decided upon in two minutes or less, do it immediately. This approach helps clear minor decisions from your mental queue, allowing you to focus on more significant decisions with greater clarity and speed.

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You're Not Growing Fast Because You're Making Decisions Slowly | Ep 859

Importance of Fast Decision-Making in Business and Leadership

In the dynamic world of business, swift decision-making is a key driver for success and agility within organizations. Leaders play a crucial role in determining the pace and inspiring immediate action within their teams.

Fast Decision-Making Is Crucial for Success and Agility

The constantly changing variables in business highlight the need for quick, effective decision-making over lengthy planning. Bezos emphasizes the importance of distinguishing between irreversible decisions, or "one-way doors," and reversible decisions, or "revolving doors."

Quick Decisions Over Lengthy Planning in a Changing Business Environment

Long-term planning may be less valuable in a rapidly changing business environment, as goals can become outdated almost as quickly as they are set. The host underscores the importance of making prompt decisions that address immediate needs, suggesting that today's decisions are more crucial than elaborate long-term plans that may lose relevance.

Leader's Speed Sets Team Pace; Leaders Must Inspire Action

Alex Hormozi introduces the idea that "the speed of the boss is the speed of the team," implying that a leader's decision-making tempo directly affects the entire team's pace. A quick-thinking leader not only influences but also inspires decisiveness as a fundam ...

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Importance of Fast Decision-Making in Business and Leadership

Additional Materials

Clarifications

  • Jeff Bezos's distinction between irreversible decisions and reversible decisions is a concept he uses to guide decision-making at Amazon. Irreversible decisions, or "one-way doors," are choices that are difficult or impossible to reverse once made. Reversible decisions, or "revolving doors," are choices that can be easily adjusted or reversed if needed. This framework helps prioritize quick action for reversible decisions while allowing more time and analysis for irreversible ones. Bezos encourages a bias for action on reversible decisions to maintain agility and adaptability in a fast-paced business environment.
  • The phrase "the speed of the boss is the speed of the team" emphasizes that a leader's pace and decisiveness directly influence how quickly their team operates and makes decisions. It highlights the correlation between a leader's actions and the overall efficiency and effectiveness of the team. This concept underscores the importance of leadership in setting the tone and pace for the entire team to follow suit. Leaders who act decisively and swiftly can inspire their team members to do the same, fostering a culture of prompt decision-making and agility within the organization.
  • In a rapidly changing business environment, long-term planning may be less valuable due to the unpredictable nature of variables and market conditions. Shorter planning horizons allow for more flexibility and adaptability to sudden shifts and emerging opportunities. Rapid changes can render long-term plans obsolete before they can be fully implemented, making quick dec ...

Counterarguments

  • While swift decision-making can be beneficial, it can also lead to hasty and poorly thought-out decisions that may harm the business in the long run.
  • Leaders who prioritize speed over accuracy may overlook important details or fail to consult key stakeholders, which can lead to suboptimal outcomes.
  • Some irreversible decisions require careful consideration and due diligence, as their consequences can be significant and long-lasting.
  • Long-term planning remains valuable for setting strategic direction and ensuring that the organization is prepared for future challenges, even in a changing environment.
  • Quick decisions may address immediate needs, but they can also be reactive rather than strategic, potentially leading to a lack of coherence in business strategy.
  • The speed of the boss does not always determine the team's pace, as team dynamics and individual capabilities also play a significant role.
  • A leader's fast decision-making tempo could create a stressful work environment and lead to burnout among team members if not managed properly. ...

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You're Not Growing Fast Because You're Making Decisions Slowly | Ep 859

Decision-Making Lessons From Entrepreneurs Like Elon Musk and Jeff Bezos

Learning from entrepreneurs like Elon Musk and Jeff Bezos can offer valuable insight into the art of decision-making in the fast-paced world of business.

Entrepreneurs Prioritize Quick Decisions, Accepting Possible Failures

Entrepreneurs including Mark Zuckerberg, famous for the "move fast and break stuff" ethos, emphasize the importance of rapid decision-making and an acceptance of potential failures.

Elon Musk Aims For 80% Right Decisions, Fixes 20% Later

Elon Musk's strategy in managing his companies, including Tesla, reflects a tolerance for risk that many successful entrepreneurs share. According to Alex Hormozi, Musk makes decisions on the spot, aiming to be right about 80% of the time and accepting that the remaining 20% can be addressed and corrected later. This approach values speed and accepts the inherent imperfections of the decision-making process.

Bezos On Differentiating "One-way" vs. "Revolving Door" Decisions

Jeff Bezos, the founder of Amazon, contributes another perspective on decision-making. Bezos differentiates between decisions that are irreversible and those that are not, something he refers to as "one-way door" versu ...

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Decision-Making Lessons From Entrepreneurs Like Elon Musk and Jeff Bezos

Additional Materials

Clarifications

  • The "move fast and break stuff" ethos is a mindset popular in the tech industry, particularly associated with Facebook's early days. It emphasizes taking quick action and not being afraid to make mistakes or encounter failures in the pursuit of progress and innovation. This approach prioritizes speed and agility in decision-making, valuing learning from mistakes and iterating rapidly over perfection before moving forward.
  • Elon Musk's decision-making strategy, as described by Alex Hormozi, involves aiming to be right about 80% of the time and addressing the remaining 20% later. Musk prioritizes quick decisions and accepts that some decisions may need adjustments in the future. This approach values speed and acknowledges the inevitability of some imperfections in decision-making. Musk's strategy reflects a willingness to take risks and iterate on decisions as needed.
  • Jeff Bezos uses the terms "one-way door" and "revolving door" decisions to categorize choices based on their reversibility. "One-way door" decisions are irreversible, meaning once you go through them, it's challenging to reverse the outcome. On the other hand, "revolving door" decisions are reversible, allowing for adjustments or corrections if needed. Bezos emphasizes the importance of distinguishing b ...

Counterarguments

  • While prioritizing quick decisions can be beneficial, it can also lead to hasty and poorly thought-out outcomes that may harm a business in the long run.
  • Accepting possible failures is important, but it's also crucial to have robust risk management strategies in place to mitigate potential negative impacts.
  • Aiming for 80% right decisions might not be suitable for all types of businesses or industries, especially those with higher stakes or where errors can have severe consequences.
  • Valuing speed in decision-making could sometimes compromise the quality of the decisions or overlook important considerations that require more time to analyze.
  • Differentiating between "one-way" and "revolving door" decisions is useful, but it may not always be clear-cut which category a decision falls into, leading to misjudgment.
  • The i ...

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You're Not Growing Fast Because You're Making Decisions Slowly | Ep 859

Overcoming Fear of Mistakes and Increasing Decision Speed

Alex Hormozi underlines the significance of rapid decision-making in business and how the fear of fault can hinder progress and efficiency within an organization.

Leaders Should Normalize Fast Decision-Making

Emphasizing Course-Correction Over Fearing Mistakes

Hormozi is dedicated to teaching his team about the value of decisiveness, urging them to make quick choices to advance the organization's pace. He captures a philosophy aligned with Elon Musk, which states that even when a decision turns out to be flawed, there is always the opportunity to rectify it. Moreover, Hormozi recommends beginning decisions with an acknowledgment of potential error but underscores the necessity of progressing and being prepared to fix any missteps.

Prioritizing Speed Over Marginal Decision Quality

Acting Quickly Is Better Than Delaying For Perfection

Hormozi imparts the importance of normalizing swift decision-making and mitigating the discomfort associated with the occasional poor decision by refraining from penalizing those who make them. He introduces the concept of the "decision batting average," where someone with 80% sound decisions is considered a good decision-maker.

Hormozi encourages his team to act decisively without rue, highlighting the primacy of prompt action and the readiness to course-correct as required. He advocates for making expedient decisions that are mostly correct, with the understanding that adjustments can be made for any errors. Embracing a margin of error, Hormozi leans toward implementation and adaptability, intending to hit the 80% right decision mark while being agile enough to shift the remaining 20%.

Furthermore, Hormozi asserts that leaders should prioritize the speed of decision-mak ...

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Overcoming Fear of Mistakes and Increasing Decision Speed

Additional Materials

Counterarguments

  • While rapid decision-making can be beneficial, it may not always be suitable for complex or high-stakes decisions that require thorough analysis and consideration.
  • Normalizing fast decision-making might inadvertently create a culture where quantity is valued over quality, potentially leading to a series of poorly thought-out decisions.
  • Emphasizing course-correction could lead to a lack of accountability, as individuals might expect that any mistake can simply be fixed later, which is not always the case.
  • Acknowledging potential errors is important, but it should not replace the need for due diligence and risk assessment before making decisions.
  • Prioritizing speed over marginal decision quality assumes that the cost of correcting a mistake is always lower than the cost of taking more time to make a better decision, which may not be true in all cases.
  • The concept of a "decision batting average" oversimplifies the impact of decisions, as not all decisions carry the same weight or consequences.
  • Encouraging prompt action is beneficial, but it should be balanced with the need for reflection and consultation to avoid rash decisions.
  • Embracing a margin of error is realistic, but it should not lead to complacency or a lack of striving for excellence in decision-making.
  • Prioritizing the speed of decision-making over flawless information could result in decisions based on incomplete or inaccurate data, leading to negative outcomes.
  • Preferring immediate action over perfection can be pragmatic, but it may also overlook the benefits of strategic patience ...

Actionables

  • You can set a timer for decision-making to practice speed over perfection, starting with small, everyday choices. For instance, give yourself 30 seconds to decide what to have for breakfast or which shirt to wear. This habituates your brain to making quick decisions and accepting the outcomes, which can then be applied to more significant decisions.
  • Develop a personal "decision journal" where you track the outcomes of your rapid decisions. Note down the decision, the reasoning behind it, the expected outcome, and the actual result. Over time, this will help you see patterns in your decision-making and understand that not every quick decision leads to negative outcomes, reinforcing the value of swift action.
  • Create a "reversibility checklist" for ...

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